MA Sales and Use Tax: Legislature Votes to Repeal Computer Service Tax

September 30, 2013UncategorizedComments Off on MA Sales and Use Tax: Legislature Votes to Repeal Computer Service Tax

The Massachusetts House of Representatives, by a vote of 156 to 1, and the Senate, by a unanimous vote, have approved legislation that eliminates sales and use tax on computer system design services and the modification, integration, enhancement, installation, or configuration of standardized software. Governor Deval Patrick signed the legislation on September 27, 2013. The repeal would be effective retroactive to July 31, 2013, the date the tax initially took effect. Sellers would be required to make reasonable efforts to return to purchasers any tax that was collected but not remitted to the Department of Revenue. The department would be required to refund all tax that was remitted during the time the tax was in effect. A taxpayer claiming a refund would be required to file an abatement application by December 31, 2013. Persons who failed to collect or pay tax on these transactions would not be subject to penalties. The DOR will be posting further guidance on the repeal and information about filing for refunds on Monday or Tuesday – visit http://www.mass.gov/dor